An agreement by which an owner of real property (lessor) gives the right of possession and use to another (lessee), for a specified period of time (term) and for a specified consideration (rent).

Lessee

The party to whom a lease (the right to possession) is given in return for a consideration (rent); tenant.

Lessor

The party who gives the lease (right to possession) in return for a consideration (rent); owner.

Lien

An encumbrance against property for money, either voluntarily or involuntarily.

Loan-to-Value Ratio (LTV)

The ratio between the principal balance of a mortgage on a property and the appraised value (or sale price) of the property. Example: if a home is appraised at $100,000 with an $85,000 mortgage, the LTV is 85%.